Some of the channel members take legal title and physical possession of the merchandise. Others, such as some manufacturers’ representatives, are one or two-person operations. Many of the members of the distribution channel are large, complex organizations, such as chain stores and multibrand wholesalers. It is interesting to note that Clairol’s channels of distribution, which are fairly typical for this industry, include a mixture of Clairol employees (e.g., district sales managers) and independent outsiders, such as manufacturers’ representatives, distributors or wholesalers, and retailers.
Exhibit I shows the path by which these items are distributed to consumers.Įxhibit I Clairol’s appliance division distribution system is a major marketer of personal care appliances, such as hair curlers and dryers, makeup mirrors, and associated goods.
More traditional markets also involve many parties. In the automotive aftermarket, for example, it is not uncommon for auto parts and supplies to move through more than five or six wholesalers and retailers on their way to the consumer. The channels of distribution can be amazingly complex.
#Ways that office mix can be used how to
Finally, I will show how to use the promotional mix-that is, the various promotional techniques as a way to manage distributors. The remainder of this article is devoted to a discussion of the distribution channels, and a review of the many ways of promoting an industrial or consumer product. In fact, the trend appears to be continuing. There is, furthermore, no evidence that the growth in sales promotional spending is abating. For most, sales promotional expenditures are many times greater than advertising expenditures. Industrial marketers tend to use little advertising, while emphasizing personal selling. 5 However, it is important to note that a substantial part of this money is being misspent, some of it through poor planning. The increase in sales promotion spending in the consumer goods field is greater than that of advertising promotion. 4 These retail trends are expected to continue. Sales increased from $313 billion to $581 billion over the same period. Employment growth increased from 10,081,000 people in 1967 to 13,134,000 in 1974 despite a continuing trend toward self-service shopping. 3 Thus an increasing proportion of effort is being directed to the wholesale portion of the economy.ĭata for the retail trade are equally impressive. 2 From 1947 to 1973 wholesale employment increased 72 % while manufacturing employment increased 27 %. Employment in wholesale trades increased from 3,525,000 people in 1967 to 4,259,000 in 1974, and is projected to increase to 5 million by 1980. 1 While some of this growth is due to inflation, a substantial portion of it is physical growth. For example, from 1967 to 1976 the annual sales of merchant wholesalers increased from $205 billion to $498 billion, and are projected to grow to $1 trillion by 1985. The growth in distribution channels is well documented statistically. These trends are (1) the growing importance of distributors for both industrial and consumer goods, and (2) an increasing reliance upon sales promotion programs, often at the expense of advertising. The program must be coordinated in a coherent fashion which considers marketing objectives as well as budget constraints.īefore discussing the use of the promotional mix in greater detail, it is useful first to review two important trends which not only show the urgency of the problem of managing distribution channels, but also point to the efficacy of the solution. Each product has its own needs that require a tailored set of promotional devices.ĥ.
Each level of the channel needs its own mix of promotional devices.Ĥ. There are many promotional techniques which can be used to accomplish this.ģ. The manufacturer should manage his channels of distribution in a cooperative manner to sell through and not to his distributors and their sales-people.Ģ. Accordingly, the essence of the program I will propose here is:ġ. While there is no easy solution to gaining better distributor support, astute use of the promotional mix makes it possible to accomplish goals at minimum expense. Our channels are so long and complex that we have little effect on them.” But when I press the button which says, ‘Get the distributors to increase sales of product A immediately,’all too often I get a push on product C in three months. “If I could gain more help from my distribution channels, we could substantially increase volume and have even greater impact on profits.
0 kommentar(er)
